Article 1 If the plaintiff claims that the defendant intentionally infringes on the intellectual property rights he enjoys according to law and the circumstances are serious, and requests that the defendant be ordered to bear punitive damages, the people's court shall examine and handle it according to law.
Intention as mentioned in this interpretation includes malice as stipulated in the first paragraph of Article 63 of the Trademark Law and the third paragraph of Article 17 of the Anti-Unfair Competition Law.
Article 2 Where the plaintiff requests punitive damages, the amount of compensation, the calculation method, the facts and reasons on which it is based shall be made clear at the time of prosecution.
Before the end of the debate in the court of first instance, if the plaintiff increases the punitive damages, the people's court shall allow it; If punitive damages are added in the second instance, the people's court may mediate according to the principle of voluntariness of the parties. If mediation fails, the parties concerned shall be informed to file another lawsuit.
Article 3 The people's court shall comprehensively consider such factors as the type of the infringed intellectual property object, the status of rights, the popularity of related products, and the relationship between the defendant and the plaintiff or interested party.
Under the following circumstances, the people's court may preliminarily determine that the defendant intentionally infringed intellectual property rights:
(1) After being notified and warned by the plaintiff or interested party, the defendant continues to commit the infringement;
(2) The defendant or his legal representative or manager is the legal representative, manager or actual controller of the plaintiff or interested party;
(3) There are labor, labor, cooperation, licensing, distribution, agency and representative relationships between the defendant and the plaintiff or interested parties, and they have been exposed to the infringed intellectual property rights;
(4) The defendant has business dealings with the plaintiff or interested parties, or has negotiated for the conclusion of a contract, and has been exposed to infringed intellectual property rights;
(5) The defendant has pirated or counterfeit registered trademarks;
(six) other circumstances that can be identified as intentional.
Article 4 The people's court shall comprehensively consider the means and times of infringement, the duration, geographical scope, scale and consequences of infringement, the behavior of the infringer in litigation and other factors to determine the seriousness of the infringement of intellectual property rights.
If the defendant is under any of the following circumstances, the people's court may determine that the circumstances are serious:
(a) the same or similar infringement is committed again after being subjected to administrative punishment for infringement or being investigated for responsibility by the court;
(2) Infringement of intellectual property rights;
(3) Forging, destroying or hiding evidence of infringement;
(4) Refusing to perform the preservation ruling;
(five) the infringement gains or the obligee suffers huge losses;
(six) the infringement may endanger national security, public interests or personal health;
(seven) other circumstances that can be identified as serious.
Article 5 When determining the amount of punitive damages, the people's court shall, in accordance with relevant laws, take the actual loss of the plaintiff, the amount of illegal income of the defendant or the benefits obtained from infringement as the calculation base. The base does not include the reasonable expenses paid by the plaintiff to stop the infringement; Where there are other provisions in the law, those provisions shall prevail.
If it is difficult to calculate the actual amount of loss, the amount of illegal gains and the benefits obtained from infringement as mentioned in the preceding paragraph, the people's court shall reasonably determine it according to law with reference to the multiple of the right license fee and use it as the calculation base of punitive damages.
The people's court shall order the defendant to provide account books and materials related to the infringement. If the defendant refuses to provide or provides false account books and materials without justifiable reasons, the people's court may determine the calculation base of punitive damages with reference to the plaintiff's claim and evidence. If the circumstances stipulated in Article 111 of the Civil Procedure Law are constituted, legal responsibilities shall be investigated according to law.
Article 6 When determining the multiple of punitive damages according to law, the people's court shall comprehensively consider the subjective fault of the defendant, the severity of the infringement and other factors.
The people's court shall not support the defendant who has been sentenced to an administrative fine or a criminal fine for the same tort and has completed the execution, but it may consider it comprehensively when determining the multiple listed in the preceding paragraph.
Article 7 This Interpretation shall come into force on March 3, 20021year. If the relevant judicial interpretations previously issued by the Supreme People's Court are inconsistent with this interpretation, this interpretation shall prevail.